MOSCOW, Mar 17 SVB Financial Group, the parent company of Silicon Valley Bank, has filed for bankruptcy with a view to further reorganization, the company said in a release.
«SVB Financial Group… has filed a voluntary Chapter 11 supervised reorganization petition with the United States Bankruptcy Court for the Southern District of New York to preserve value,» — the release says.
However, SVB Securities and SVB Capital and partner entities are not included in the Chapter 11 filing and continue to operate as usual as SVB Financial Group continues its previously announced exploration of strategic alternatives for these high-value businesses. SVB Financial Group, which owns the share capital of SVB Securities, is committed to supporting SVB Securities throughout the reorganization process. SVB Financial Group intends to use a court-supervised process to evaluate strategic alternatives for SVB Capital, SVB Securities and the company's other assets and investments.
It is clarified that SVB Financial Group is no longer associated with Silicon Valley Bank, N.A. or its private banking and wealth management division SVB Private. Centerview Partners LLC assists the restructuring committee in the process of selecting strategic alternatives. Any sale process will be carried out under the Chapter 11 procedure and must be approved by the court.
The company also said that it estimates its liquidity at about $2.2 billion. In addition to cash and stakes in SVB Capital and SVB Securities, SVB Financial Group has other high value investment securities accounts and other assets for which it is also exploring strategic alternatives.
The closure of Silicon Valley Bank and Signature Bank was announced in March, the largest bank failure in the US since the 2008 financial crisis. The collapse of the SVB was associated with an increase in the discount rate of the US Federal Reserve, which led to the depreciation of assets on the balance sheets of many financial institutions. The US authorities have announced support measures. .html» data-title='Deripaska called the negative consequences of the «agony» of the US financial system»>